This post was originally published on 8 November 2016.
In an extraordinary step to tackle the scourge of black money in the country, India has banned the use of Rs 500 and Rs 1000 notes that are in circulation.
In his first televised address to the nation, Prime Minister Narendra Modi announced that Rs 500 and Rs 1000 notes will no longer be legal from Tuesday midnight.
He explained that the currency notes will be just paper with no value.
Here are the 11 things you should know:
- People holding notes of Rs 500 and Rs 1000 can deposit the same in their bank and post office accounts from November 10 till December 30.
- Banks will remain closed tomorrow (November 9) and ATMs may also not function tomorrow and day after to cope with the change.
- Notes of Rs 100, 50, 10 and coins of all denominations will remain legal tender and will not be affected.
- Rs 500 and Rs 1000 notes can also be exchanged with lower denomination currency notes at designated banks and post offices on production of valid government identity cards like PAN, Aadhaar and Election Card from November 10 to November 24, with a daily limit of Rs 4000.
- Those unable to deposit Rs 1000 and Rs 500 notes till December 30 this year can do so in designated RBI offices till March 31 next year after filling a declaration form along with proof and reasons.
- Notes of Rs 2000 and Rs 500 will be circulated soon, RBI has decided to limit the notes with higher value.
- Hospitals will continue to accept the big currencies for the next 72 hours.
- Rs 500 and Rs 1000 notes will also be valid for transactions related to booking of air tickets, railway bookings, government bus ticket counters till the midnight of November 11 and 12.
- These will also be allowed till November 11 at petrol stations authorised by public sector oil companies, milk booths and crematoria and burial grounds.
- Tourists can change notes at airports.
- Online transactions and card payments will not be affected.
Narendra Modi addressed the nation after meeting with the Cabinet and heads of three defence forces.
PM Modi said, “There will be no change in any other form of currency exchange be it cheque, DD, payment via credit or debit cards etc”.
“The process of cash circulation is directly related to corruption in our country impacting the lower classes of our society,” he added.
According to sources, the bold move has been taken by the Narendra Modi government to tackle the situation of terrorism who use black money and flourish with the help of it.